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New Zealand’s competition enforcement and regulatory agency The Commerce Commission is resuming a study to consider what, if any, changes are needed to the telecommunications sector to better promote competition.
The Commission has announced the study will include a look at domestic telecommunication backhaul services. New Zealand's backhaul link carries mobile, internet and voice traffic back from local exchanges, mobile and wireless sites to the core networks of service providers like Vocus, Vodafone, and Spark
“We see backhaul as critical to ensuring New Zealanders can benefit from effective access to comprehensive broadband services, especially with the rollout of ultrafast fibre broadband,” Telecommunications Commissioner Dr Stephen Gale said.
In August 2016 the Commission started the study under section 9A of the Telecommunications Act. The aim of the study is to better understand how domestic backhaul services have evolved, how demand for different backhaul services may develop in future, and consider whether any regulatory changes would better promote the long-term interests of consumers.
{loadposition peter}The study was put on hold in February 2017 while the Government proceeded with its review of the Telecommunications Act and, with the Telecommunications (New Regulatory Framework) Amendment Bill now before a parliamentary select committee, the Commission says it believes it is an appropriate time to restart the study.
“The submissions we have already received have helped us to better understand the market. We intend to gather further information on a range of matters raised in submissions. This information will help us decide where to focus the remainder of the study,” Dr Gale said.
The Commission says an updated timeframe for the study will be published once it has gathered further information from a number of parties.
The study announcement coincides with the Commission’s launch of a new series of videos and quick guides to help businesses and procurers understand competition law.
The videos and quick guides were initially prepared by the United Kingdom’s Competition and Markets Authority (CMA) and have been adapted for New Zealand law by the Commission.
“Every New Zealand business, no matter how big or small must comply with the Commerce Act, which promotes competition in markets for the long-term benefit of consumers. Businesses and individuals can face big penalties and individuals can be banned from running a company if they are found to have broken the law,” Competition and Consumer General Manager Antonia Horrocks said.
“Competition between businesses is essential to keep prices low and quality high. It ensures consumers have a range of choice, and firms have incentives to innovate, invest and operate efficiently.”
“The new resources cover anti-competitive conduct including bid-rigging, price-fixing and allocating markets, which can have serious negative effects for consumers, other businesses, and taxpayers. They also provide advice for businesses on how to report illegal activity they or their competitors have been involved in.”
